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'A friend of a friend had a brilliant place in North London going and, after two viewings, they decided to go for it - and put an offer in.

'Now it's just a matter of getting the offer accepted, signing the paperwork and exchanging contracts. Both of them are really happy. Things are going great.'

Sienna, 28, already put her two-bedroom 'bachelorette pad' in Maida Vale, West London, on the market earlier in the year, with the view of moving in with Jude.

Smiley, happy people: Jude and Sienna couldn't keep the smiles off their faces as they enjoyed an evening stroll

And in June the actress enlisted the help of her former step-mother Kelly Hoppen to refurbish Jude's five-bedroom, four-storey Georgian property, where they lived during their first engagement.

A source close the couple told The Mail at the time: 'Kelly is overseeing everything on the house - the lighting alone is a fortune.

'The design is all based on a palette of browns, greys and creams. Kelly calls it luxury minimalism.'But if their offer on this new property is accepted, their extravagant overhaul of the Little Venice property may be just in preparation to sell.

House hunters: The couple, pictured viewing a property in April, have been on the hunt for several months

Jude and Sienna have looked at several homes in North London, where the property under offer is believed to be located, and concentrated their search in the Highgate area.

A friend told the Daily Star, 'They’ve looked at a few properties. They’ve taken a real fancy to a £4million six-bedroom period property near their favourite pub in Highgate.

'Buying in Highgate means they can still walk to Hampstead in minutes and Jude will be just around the corner from his ex-wife Sadie Frost and their children' - Rafferty, 12, Iris, 9, and Rudy, 7.

The couple, who are rumoured to be marrying in the Loire Valley, are expected to remain in London for the next year, as Jude is set to begin filming the Sherlock Holmes sequel here in October.

They dined with the film's star Robert Downey Jr. and his wife Susan Levin at upmarket J Sheekey in Covent Garden on Sunday night.

Double date: Jude Law and Sienna Miller (left) joined Robert Downey Jr and his wife Susan Levin for dinner at J Sheekey in Covent Garden on Sunday night

The seafood restaurant was a favourite haunt of Sienna's in 2005 when she starred in As You Like It at the nearby Wyndham's Theatre.

The chic foursome all dressed up for the occasion. Sienna wore a simple black dress and bright pink lipstick, while Jude looked dapper in a grey suit. He appeared to be adopting the 'JLS Marvin Humes look', with a very low cut white T-shirt.

Robert Downey Jr rugged up in a black suit and cardigan, and his wife Susan looked elegant in black satin trousers, heels and a blazer.

Law and Downey Jr, who portrayed Sherlock Holmes and Dr John Watson in Guy Ritchie's 2009 hit, seemed to have plenty to catch up on, and stayed at the restaurant until 11.30pm.

Do you have a story about a celebrity? Call the Daily Mail showbusiness desk on 0207 938 6364 or 0207 938 6683

Co-stars: Jude and Robert will begin filming the Sherlock Holmes sequel in October

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Sienna Miller and Jude Law place offer on £3.5 million North London townhouse